Clara visits the local bakery shop several times a week and knows the owner, Sam, very well. Her favorite cupcakes, chocolate cream, sell for $2 each at any bakery or coffee shop in town. Assuming Clara and all other buyers in the market believe they can't do better, $2 is likely the ____ price. Now suppose there was some disruption in the market for flour, an ingredient in cupcakes, and Sam raised the price to $2.50, while the coffee shop down the street only raised its price to $2.25. Given this information, Clara chooses to buy her favorite cupcake from the coffee shop down the street, which is the____ choice for her.

Question 7, Concept HW Score: 20%, 6 of 30 Check 1.2.0.2 points O Points: 0 of 1 Save Clara visits the local bakery shop several times a week and knows the owner, Sam, very well. Her favorite cupcakes, chocolate cream, sell for $2 each at any bakery or coffee shop in town. Assuming Clara and all other buyers in the market believe they can't do better, $2 is likely the price. Now suppose there was some disruption in the market for flour, an ingredient in cupcakes, and Sam raised the price to $2.50, while the coffee shop down the street only raised its price to $2.25. Given this information, Clara chooses to buy her favorite cupcake from the coffee shop down the street, which is the choice for her